The Iranian Livelihood Basket Shrinks; Clothing Budget for Lower Deciles: 30,000 Tomans a Year

According to published statistics, the continuous decline in the purchasing power of poor Iranian households for "clothing and shoes" has significantly increased the cost difference between the highest and lowest deciles in Iranian society. The economic news website Eko-Iran reported on Saturday, August 12, that with the rising prices of "clothing and shoes" in July, the diminishing priority of these items in the livelihood basket of poor deciles due to their reduced purchasing power has meant that inflation for these goods has had little impact on the overall expenses of these groups. The report states that while the importance coefficient of "clothing and shoes" for lower deciles was calculated at about 2% in the base year of 1395 (2016), its reduction to 1.17 in 1400 (2021) indicates a decrease in its significance in the consumption basket of the poor. Previous reports regarding the differences in clothing and shoe expenses among various social classes also indicate the spread of poverty and an increasing gap between social classes. The Statistical Center of Iran estimated in May 2017 that the expenses for shoes and clothing among the wealthiest (tenth decile) were 32 times those of the poorest (first decile) in society. Experts say that economic pressure and rising living costs have led to a permanent increase in the population living below the poverty line in Iran. Alireza Asgariyan, Deputy Minister of Welfare in the Ministry of Cooperatives, Labor, and Social Welfare, also announced the monitoring of the poverty line by government institutions and the updating of household deciles in the next two months. Asgariyan cited various narratives regarding absolute poverty, relative poverty, and severe poverty as reasons for this action. The Research Center of the Parliament has reported that the poverty rate has increased to more than 30% of the country's population. Additionally, according to the online newspaper Faraz, another 27% of Iranian society is in conditions very close to poverty. With the worsening inflation situation and increasing dissatisfaction with the rising prices of essential goods, the Islamic Republic has recently implemented an electronic coupon plan to control the price increases of essential goods. Despite the worsening economic conditions in Iran, officials of the Islamic Republic have announced their intention to spend on matters that are not priorities for the livelihood of the people, including the "Arbaeen pilgrimage". Mohammad Reza Farzin, the Governor of the Central Bank of the Islamic Republic, also announced on Thursday, August 3, that he would allocate "up to 200,000 dinars" in currency to anyone traveling from Iran to Iraq for the Arbaeen occasion. Meanwhile, the online newspaper Faraz reported on August 1, citing statistics released by officials, that "30% of the country's population lives below the poverty line, and another 27% are in conditions very close to poverty, meaning nearly 60% of the country's population is either absolutely poor or living with basic necessities."